India’s Wipro announced that it had signed a deal to acquire US-based Appirio for 500 million USD.
Wipro is an information technology, consulting, and business process services company based in Bangalore, while Appirio, is a global services company with headquarters in Indianapolis.
It helps companies create Worker and Customer Experiences using cloud technologies.
Wipro will also gain Topcoder, which Appirio bought in 2013.
Topcoder is a crowdsourcing company that brings together design, development, and data science experts to work on problems submitted by customers.
Appirio Latest Acquisition by India’s Wipro
In December of 2015, Wipro also purchased Cellent AG, an IT consulting and software service company, based in Germany — the 73.5 million Euro deal got completed earlier this year.
Also, in February of this year, India’s Wipro bought HealthPlan, a US company.
HealthPlan, based in Florida, provides sales, benefits administration, retention, reform, and technology solutions to insurance and managed care industries.
Appirio, founded in 2006, has offices in:
This new deal, which should be complete by the end of this quarter, will create an IT services giant in the areas of cloud transformation and systems integration.
Abidali Z. Neemuchwala, CEO and Executive Director of Wipro, stated:
“Appirio and Wipro are coming together to unlock transformational synergies in the applications space and help enterprises create new business models.”
Consequently, their combination will give the company a workforce more geared around the “on-demand” model prevalent in current technology economics.
Appirio lists just 1250 employees, to Wipro’s 170,000, but also brings in many thousands of contractors from the Topcoder platform– which numbers over one million members.
Wipro plans to consolidate its existing cloud applications services, including software from Salesforce and Workday, under the Appirio brand.
Chris Barbin, CEO of Appirio since its beginning, will head the combined cloud services division.
Is the acquisition a good move for Wipro? Does the move make sense for Appirio? Post your thoughts in the comments section below.